Update on mortgage rates from Freddie Mac and the Mortgage Bankers Association. And a picture of a cat since it is Caturday…
And of course it is time to check in on the average mortgage rates that Freddie Mac and the MBA reported for this week:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.57% from 3.56%, with points increasing to 0.44 from 0.39 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.81% from 3.74%, with points increasing to 0.42 from 0.40 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained constant at 3.34%, with points increasing to 0.82 from 0.71 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.87% from 2.88%, with points decreasing to 0.39 from 0.40 (including the origination fee) for 80% loan-to-value ratio loans. The 15-year contract rate has decreased for eight consecutive weeks and is a new record low in the survey.
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.37% with an average 0.7 point
- This is down from last week when it averaged 3.39%
- Last year at this time, 30-year fixed-rate mortgages averaged 4.11%
- 15-year fixed-rate mortgage this week averaged 2.66% with an average 0.6 point
- This is down from last week when it averaged 2.70%
- A year ago at this time, 15-year fixed-rate mortgages averaged 3.38%
The Take Away:
Not any big changes or trends to speak of this week. Some rates decreased and some increased but rates are still very very low. Of course, these are the average rates. You might get a lower rate or you may have to pay more. The only way to know what is possible is to take the first step towards buying a home.
You did know the first step is talking to a mortgage professional?
Well, if you find a home you love and want to make an offer, in today’s market sellers almost always demand a pre-approval letter before they will consider an offer. With buyers in short supply, why should a seller take a chance on missing a buyer that CAN close?
Show the seller you are a serious and qualified buyer. Also, many experienced real estate agents or REALTORS require a copy of a pre-approval letter before they devote much time, energy or money on a buyer. Gas is not cheap and it is MUCH cheaper than my time.
As always, I am providing this to you for informational purposes only! I am not a mortgage lender and you should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products.